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The U.S., Japan, and China Lead the $113.5 Billion Grid Storage Market in 2017

(Transmission & Distribution World Via Acquire Media NewsEdge) Despite regulatory uncertainty, a highly-fragmented global
market, and a risk-averse client base, the demand for energy
storage on the grid will zoom to $113.5 billion in 2017, from a
$2.8 billion market in 2012, reaching 185.4 gigawatt-hours (GWh) of
capacity from 3.2 GWh, according to a
Lux Research report.

Lux Research analysts developed a dynamic Grid Storage Demand
Forecaster to evaluate the internal rate of return (IRR) and
levelized cost of electricity (LCOE) of eight grid storage
technologies in six applications throughout 44 countries and all 50
US states, identifying unappreciated opportunities. The Demand
Forecaster also compares the impact of renewable portfolio
standards (RPS), the pay-for-performance ruling, and government
subsidies on global demand to identify the technologies,
applications, regions, and US states with the most promise for grid
storage. Five countries divvy up the top 77% of this market:
“Utilities need to manage an increasingly variable load of
intermittent renewable energy sources and commercial customers
require more reliable electricity supplies to mitigate outages that
cost the United States alone between $80 billion and $188 billion
annually,” said Brian Warshay, Lux Research Associate and
lead author of the report titled, “Grid
Storage under the Microscope: Using Local Knowledge to Forecast
Global Demand.” Conclusions gleaned from the report
include:
Renewable energy shifting shows
greatest potential. The largest application for grid storage will
be renewable energy shifting, snatching up to $61 billion, or 54%
of the demand, in 2017.The Americas are poised to double its
market share. Though Asia-Pacific and Europe, the Middle East and
Africa (EMEA) hold 88% of the market in 2012, the Americas’
share will more than double from 12% to 25% by 2017, bringing the
three global markets closer to parity.Technology diversification is underway.

Over the last three years the grid storage market has shifted from
one dominated by molten salt batteries to one more diversified,
including Li-ion batteries, flywheels, and advanced lead
batteries.The report, titled “Grid Storage under the Microscope:
Using Local Knowledge to Forecast Global Demand,” is part of
the Lux Research
Smart Grid and Grid Storage Intelligence service.